Bank of Papua New Guinea

The Bank of Papua New Guinea is the central bank of Papua New Guinea.

Constitutional Authority

Central Banking Act 1973

The Bank of Papua New Guinea was established by the Act of Parliament (Central Banking Act, 1973) which defines its powers and functions:

"The Central Bank shall, within the limits of its powers, ensure that its monetary and banking policy is directed to the greatest advantage to the people of Papua New Guinea, and direct its efforts to promoting monetary stability and a sound and efficient financial structure."(Central Banking Act, 1973)

Previously to Papua New Guinea's independence, the central bank was a branch of the Reserve Bank of Australia, then the colonial power.

Central Banking Act 2000

The purpose of the Central Banking Act 2000 was to:

#Amend and consolidate the laws establishing the Bank of Papua New Guinea as the central Bank, and to define its objectives and functions;

1. Confer upon the Bank of Papua New Guinea certain functions and powers including formulation and implementation of monetary policies and regulation of the financial system;
2. Make provision for and regulate Papua New Guinea currency; and
3. Make provisions in respect of foreign exchange and international reserves

Functions of the bank

Bank of Papua New Guinea's main function is to issue currency and to act as the banker and financial agent to the Government. It is also in charge of regulating banking and other financial services and manages the gold, foreign exchange and any other international reserves of Papua New Guinea.

The Bank is engaged in policies to promote financial inclusion and is a member of the Alliance for Financial Inclusion ^[1].

Controversies

In November 2010, Flora Carruthers, former deputy governor of the Bank of Papua New Guinea, was arrested on a bench warrant issued by the National Court. It was alleged that, when deputy governor, Carruthers misappropriated K16,000 in travel allowance from the bank.^[2]

Carruthers left the bank suddenly in 2003, after a 20 year career. At the time, Central Bank Governor Wilson Kamit took the unusual step of placing an advertisement in a newspaper, explaining that Carruthers had been fired as a result of misappropriation of money belonging to the bank. Carruthers was also director of Transparency International in PNG.^[3] In 2002 Carruthers was named in the Queen’s birthday honours list for service to the Bank of Papua New Guinea.^[4]

References

See also

• Papua New Guinean kina
• Economy of Papua New Guinea

External links

• Official site: Bank of Papua New Guinea

This bank and insurance-related article is a stub. You can help Wikipedia by expanding it. v d e